CardieX (ASX: $CDX) Quarterly Cash Flow Report Highlights

CardieX Limited (ASX: $CDX) has released its quarterly cash flow report for the quarter ended 31 March 2024. The report includes details of related party payments, a new term loan facility, a short-term working capital loan facility, and a funding commitment agreement with its largest shareholder.

Executive Commentary on Funding and Cash Flow

In December 2023, the Group received $6.3m in settlement of contractual payments from the Clinichain clinical trial. A significant portion of these funds were used in the March 2024 quarter to settle trade creditors that had accumulated throughout 2023. As a result, the Board expects future cash flows to reflect a normalised quarterly operating run rate that is significantly lower than the current quarter. Furthermore, the Group received its FY2023 R&D income tax incentive in April 2024, resulting in additional operating income in the June 2024 quarter. We believe that the funding we have available is sufficient to fund the Company's growth initiatives, its operations, and to meet its business objectives.

Summary of Quarterly Cash Flow Report and Outlook

The quarterly cash flow report of CardieX Limited (ASX: $CDX) revealed related party payments, new funding agreements, and the expectation of returning to higher levels of revenue/customer receipts in future quarters. The report detailed the $6 million Funding Commitment Agreement with C2 Ventures, providing additional cash resources for the Company's growth initiatives. The Board expressed confidence in the Company's ability to continue its operations and meet its business objectives, citing the establishment of the $6 million FCA as sufficient working capital for its operations. The report also highlighted the receipt of the FY2023 R&D income tax incentive, contributing to additional operating income in the June 2024 quarter. Overall, the Company aims to maintain its growth initiatives, operations, and business objectives with the available funding and the expectation of increased revenue in the upcoming quarters.